LEO Tokenomics and How wLEO Liquidity Pools Change the Curation Game
This whole week is wLEO, wLEO, wLEO and more wLEO talk.. There are a lot of questions surrounding wrapped LEO and it’s important that we cover as much ground as possible leading up to the launch.
We want everyone here on LeoFinance/Hive to be as informed as possible before we launch wLEO on the Ethereum blockchain and list it on the Uniswap DEX.
About halfway through this clip from episode #18 of the LEO roundtable podcast, we talked about Uniswap/Ethereum traders and how our goal is to attract people outside of the Hive ecosystem.
It’s important to drive this point home: our goal is to bridge the gap from our token on Hive to the broader crypto community out there on the ETH blockchain. The wLEO token bridge allows our users and token holders to seamlessly wrap and unwrap LEO from the Hive blockchain to the ETH blockchain and vice versa.
This means that an incredible amount of utility is coming to the LEO token economy. It also means that we need a lot of liquid LEOs to be deposited into the Uniswap Liquidity Pool.
As LEO is added to this pool, we’ll see a drastic change in the tokenomics. LEO whales will be moving a significant portion of their stake over to Uniswap to take advantage of high returns for their participation in the wLEO-ETH Automated Market Maker (AMM) protocol.
As this whale stake is locked into the Liquidity Pool, the remaining stakeholders who actively curate content on LeoFinance.io will earn greater rewards because of lowered competition on a stake-weighted basis.
This brings a lot of trickle down benefits to the LEO token economy. We talk about it in this clip and a few users like @taskmaster4450 have discussed the same idea across numerous posts.
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▶️ 3Speak
Posted Using LeoFinance Beta
Now I know why ethereum has grown legs over the last short while. It is because you have rallied the financial bloggers and hive mind and the investing world knows how big this is! ;)
Hive has many powerful progressive leaders and you are among them.
I just wish I knew whether I should be sending my tiny stake or holding it for my focus on Hive.
Awesome stuff man.
haha :) Thanks man, appreciate that
There's definitely a benefit either way. If you remain staked here on Hive, your LEO curation rewards will go up because a % of the total LEO staked is being moved over to the Uniswap pool which means less competition for curation rewards.
On the other hand, if you move your LEO / ETH over to the liquidity pool, you'll earn market maker fees + a portion of the 300,000 LEO Bounty for LP's.
Different strokes for different folks. Either way, it's beneficial to both curators and liquidity providers.
Posted Using LeoFinance Beta
So which will be more profitable?
Vote or lock the coins to the pool?
Posted Using LeoFinance
The APR % that you earn as a liquidity provider is based on two factors:
It's hard to say before we even launch, but the % APR for being an LP will likely be much higher than curation rewards (some have estimated the possible APR to be 100-200% +) - but again, it's hard to say until the thing goes live.
I'm curious to see what happens, but as I just said in my comment to Zeke here on this post - whether you're a curator or LP, this is a benefiical move for you. As a curator, there will be less competition for curation rewards as some move their stake over to Uniswap which lowers their draw on the daily curation pool for LEO on Hive.
Posted Using LeoFinance Beta
Amazing post
Thank you! We'll keep them coming as we approach the Uniswap launch :)
Posted Using LeoFinance Beta
So many benefits to everyone in the Leofinance ecosystem.
Posted Using LeoFinance
Exactly! Beneficial to everyone no matter what you choose to do - remain a curator or become an LP or do a bit of both.
Posted Using LeoFinance Beta